Leases

12 Months Ended

Dec. 31, 2021

NOTE 1

—LEASES

The Company leases office space and other office equipment under operating lease arrangements (with initial terms greater than twelve months), expiring in various years through 2024. These leases have been entered into to better enable the Company to conduct business operations. Office space is leased to provide adequate workspace for all employees in Pittsburgh, Pennsylvania and Houston, Texas.

The Company determines if an arrangement is, or contains, a lease at inception based on whether that contract conveys the right to control the use of an identified asset in exchange for consideration for a period of time. For all operating lease arrangements, the Company presents at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a

right-of-use

asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

The Company has elected, as a practical expedient, not to separate

non-lease

components from lease components, and instead account for each separate component as a single lease component for all lease arrangements, as lessee. In addition, the Company has elected, as a practical expedient, not to apply lease recognition requirements to short-term lease arrangements, generally those with a lease term of less than twelve months, for all classes of underlying assets. In determination of the lease term, the Company considers the likelihood of lease renewal options and lease termination provisions.

The Company uses its incremental borrowing rate, as the basis to calculate the present value of future lease payments, at lease commencement. The incremental borrowing rate represents the rate that would be approximate the rate to borrow funds on a collateralized basis over a similar term and in a similar economic environment.

As of December 31, 2021, there were no leases entered into which have not yet commenced and that would entitle the Company to significant rights or create additional obligations. The total lease cost included in our consolidated financial statements statement of operations for the years ended December 31, 2021, 2020 and 2019 were $349, $322 and $330, respectively.

Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet and the lease expense for those leases is recognized on a straight-line basis. The short-term lease expense for the years ended December 31, 2021, 2020 and 2019 were approximately

$494

, $637 and $493, respectively.

Supplemental information related to operating lease arrangements was as follows as of and for the year ended December 31, 2021 and 2020:


	December 31, 2021			December 31, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	304		$	301
Weighted average remaining lease term (in years)		1.03			1.53
Weighted average discount rate		5.00	%		5.00	%

Future minimum lease payments for the years ending December 31, are as follows:


Year Ending
2022	$	318
2023		8
2024		2
Interest		(5	)

Total	$	323